{"id":61879,"date":"2026-05-13T04:38:28","date_gmt":"2026-05-13T08:38:28","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-oil-crisis-deepens-as-iea-reports-record-inventory-drawdown-trump-xi-summit-begins-with-nvidia-ceo-in-attendance\/61879\/"},"modified":"2026-05-13T04:38:28","modified_gmt":"2026-05-13T08:38:28","slug":"global-oil-crisis-deepens-as-iea-reports-record-inventory-drawdown-trump-xi-summit-begins-with-nvidia-ceo-in-attendance","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-oil-crisis-deepens-as-iea-reports-record-inventory-drawdown-trump-xi-summit-begins-with-nvidia-ceo-in-attendance\/61879\/","title":{"rendered":"Global Oil Crisis Deepens as IEA Reports Record Inventory Drawdown; Trump-Xi Summit Begins with Nvidia CEO in Attendance"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>IEA reports a record global oil inventory withdrawal of 246 million barrels<\/strong> during March and April, driven by the &quot;Iran War Shock&quot; and the ongoing closure of the Strait of Hormuz.<\/li>\n<li><strong>President Trump arrives in Beijing for a high-stakes summit with Xi Jinping<\/strong>, accompanied by a delegation of CEOs including Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>)&#39;s Jensen Huang and Tesla (<a href=\"\/stock\/TSLA\">TSLA<\/a>)&#39;s Elon Musk.<\/li>\n<li><strong>Nissan (<a href=\"\/stock\/NSANY\">NSANY<\/a>) cancels its FY 2026 dividend<\/strong> after reporting a massive 282.87 billion yen Q4 net loss, though operating income managed to beat analyst estimates.<\/li>\n<li><strong>Sumitomo Mitsui Financial Group (<a href=\"\/stock\/SMFG\">SMFG<\/a>) announces a 180 billion yen share buyback<\/strong> and a 2-for-1 stock split despite missing Q4 net income expectations.<\/li>\n<li><strong>BYD (<a href=\"\/stock\/BYDDY\">BYDDY<\/a>) is in active negotiations with Stellantis (<a href=\"\/stock\/STLA\">STLA<\/a>)<\/strong> to acquire underutilized car manufacturing plants in the European Union to bypass rising import tariffs.<\/li>\n<\/ul>\n<h2>Global Energy Markets in Turmoil<\/h2>\n<p>The <strong>International Energy Agency (IEA)<\/strong> released a staggering monthly report on Wednesday, revealing that the global oil supply has fallen by <strong>12.8 million barrels per day (bpd)<\/strong> since February due to the closure of the Strait of Hormuz. The agency noted that global inventories were depleted by <strong>246 million barrels<\/strong> across March and April, a record pace that highlights the severity of the &quot;Iran War Shock.&quot;<\/p>\n<p>The IEA now projects that total world oil supply will remain <strong>1.78 million bpd lower than demand<\/strong> throughout 2026, a sharp reversal from previous forecasts of a surplus. While the agency assumes a gradual resumption of flows through the Strait of Hormuz starting in June, it warned that <strong>global refinery runs will fall by 1.6 million bpd<\/strong> this year due to lower crude availability and infrastructure damage.<\/p>\n<h2>Trump-Xi Summit and the Tech Delegation<\/h2>\n<p>Geopolitical tensions took center stage as <strong>President Donald Trump<\/strong> arrived in China for a three-day summit with <strong>President Xi Jinping<\/strong>. In a last-minute move, Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) CEO <strong>Jensen Huang<\/strong> joined the official delegation during a refueling stop in Alaska, sending Nvidia shares up <strong>1.9%<\/strong>.<\/p>\n<p>Trump stated his &quot;very first request&quot; to President Xi would be to <strong>&quot;open up&quot; China to American businesses<\/strong>, specifically targeting regulatory hurdles for tech giants. The delegation also includes Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>)&#39;s <strong>Tim Cook<\/strong> and BlackRock (<a href=\"\/stock\/BLK\">BLK<\/a>)&#39;s <strong>Larry Fink<\/strong>, signaling a major push to stabilize trade relations and address artificial intelligence controls amid the regional conflict.<\/p>\n<h2>Corporate Earnings: Nissan and SMFG Diverge<\/h2>\n<p><strong>Nissan Motor Co. (<a href=\"\/stock\/NSANY\">NSANY<\/a>)<\/strong> delivered a mixed Q4 2026 earnings report, posting a <strong>net loss of 282.87 billion yen<\/strong>, which was slightly narrower than the 304.65 billion yen loss analysts had feared. Despite an <strong>operating income of 68.11 billion yen<\/strong>\u2014well above the estimated loss\u2014the automaker announced it <strong>will not pay a dividend for the 2026 fiscal year<\/strong>, citing the need to preserve cash amid &quot;ongoing earnings pressure.&quot;<\/p>\n<p>In contrast, <strong>Sumitomo Mitsui Financial Group (<a href=\"\/stock\/SMFG\">SMFG<\/a>)<\/strong> moved to reward shareholders despite a Q4 earnings miss. The bank reported <strong>net income of 188.21 billion yen<\/strong>, falling short of the 226.91 billion yen estimate, but countered the news by announcing a <strong>share buyback of up to 180 billion yen<\/strong>. Additionally, the board approved a <strong>2-for-1 stock split<\/strong> effective October 1, reflecting long-term confidence in its capital position.<\/p>\n<h2>Macroeconomic Pressures and Political Shifts<\/h2>\n<p>Inflationary concerns continue to mount as <strong>U.S. inflation remains on the rise<\/strong>, complicating the Federal Reserve&#39;s path forward. In Europe, <strong>ECB Governing Council member Dolenc<\/strong> remarked that while energy prices are currently having a &quot;limited effect&quot; on the broader economy, the <strong>French economy remains under significant pressure<\/strong>.<\/p>\n<p>In the United Kingdom, political observers noted a brief and potentially tense meeting at <strong>10 Downing Street<\/strong> between Health Secretary <strong>Wes Streeting<\/strong> and Prime Minister <strong>Keir Starmer<\/strong>. Streeting reportedly exited the building just <strong>18 minutes<\/strong> after entering, sparking speculation regarding cabinet unity as the government navigates the economic fallout of the Middle East conflict.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways IEA reports a record global oil inventory withdrawal of 246 million barrels during March and April, driven by 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